Opening own business

What would happen, If I wanted to open my own business and contract out so I could have people work for me, while on CPP-D. I would do this because I’m not able to work full time and my health is too unpredictable for me to work regularly.

If I opened up my company but kept my pay under the $5.500.00 cap, would my CPP-D be taken away from me?

I don’t know.
If you get paid market value for the work you do and come in under $5500 then I think it would be ok.
You should really ask Service Canada.

What do you mean by keeping your pay under $5,500? If the company is under your name then the profit will go to your bank account. You’ll have to declare it on your tax return. CRA sends all the information about your earnings to Service Canada.

The company could be incorporated so all the corporation’s income wouldn’t be on their tax return (it’d be a separate return).

Do you think Service Canada won’t find out that the company belongs to this person?

I don’t know if I will be able to do much of the work, due to my illness and issues. So if I hire someone and pay them I’m not sure the first year or so it will make any money. I’m trying to get better and would like to support myself, but don’t want my CPP-D taken away if I can’t work and the business doesn’t earn any money for me to live off of.

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You’re allowed to own things.

Actually working in the company might be the issue.
I would phone Service Canada to find out how best to structure the company so as not to affect CPPD.
I think it is likely you could own the company but not work for it and that would be ok.
I would definitely talk to Service Canada.

I don’t want to be devious. I am not trying to hid anything from anyone. But if I can’t work, I don’t want my CPP-D taken from me.

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You should consult a lawyer or call Service Canada directly.

If you decide to do it, I would keep very careful records of the hours you actually work. It’s definitely a risk.

If you are managing a business you own, then CPP disability can consider any income earned as self employment income. they will look at your capacity for work, not just whether you keep the money under $5500. Also, the idea of keeping the money under implies that you may be able to earn more, so again it would be a situation where they would look at your overall ability to earn income.

If you are considering doing something like this, but very up front with CPPD about it. Don’t try to manipulate the finances in any way. They want people to try and work and would let you keep CPP disability benefits until it becomes evident you had the capacity to earn more than $16000 per year.

David Brannen

Disability Lawyer with Resolute Legal

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